The Nation Newspaper

Tag: Fed Govt

  • Cleric praises Fed Govt for paying arrears

    THE Ogun State Chairman, Nigeria Supreme Council for Islamic Affairs, Alhaji Abdulrasheed Mayaleke, has commended the federal government for paying the five-month arrears of members of the Academic Staff Union of Universities (ASUU).

    He hailed the union for its doggedness in getting the government to be more committed to repositioning the tertiary education sub-sector.

    Mayaleke told journalists in Ijebu-ode that people were happy that the strike was over.

    He was, particularly, happy that the issue that kept thousands of undergraduates at home had been resolved.

    He said ASUU should be commended for not fighting for themselves alone, but also for the future of children who are yet to gain admission into the universities.

    Mayaleke urged the government to honour agreement it reached with labour unions to promote industrial peace and harmony.

    He noted that if both ASUU and the Federal Government had reached a compromise on time, all the losses incurred during the struggle would have been avoided, especially the death of the former ASUU President, Prof Festus Iyayi.

    Having got their demands from the government, the cleric urged the unionists to do their part to regain lost grounds.

    “Now that the needed fund has been disbursed, all eyes are on ASUU to fulfil the dream of making Nigeria’s universities rank among the best in the continent and the world at large,” he said.

    Mayaleke called on the three tiers of government to fund the education sector to build a virile nation.

     

  • Fed Govt inaugurates panel to recover unremitted revenues

    Fed Govt inaugurates panel to recover unremitted revenues

    The Federal Government yesterday inaugurated an inter-ministerial task team to recover all unremitted revenues discovered from audit findings.

    The move was proposed to government by the Nigeria Extractive Industries Transparency Initiative (NEITI).

    Inaugurating the committee in Abuja, the Secretary to the Government of the Federation (SGF), Anyim Pius Anyim, maintained that Nigeria signed up to the initiative based on the clear conviction that transparency in the management of the nation’s abundant extractive resources will boost government’s efforts to reduce poverty, sustain development, social harmony and better investment climate.

    Stressing that the Federal Government fully supports the regular audit and prompt implementation of issues that may arise, he charged the reconstituted task team to work closely with NEITI with a view to ensuring prompt recovery of all outstanding revenues due to the Federal Government from audit findings.

    The chairman of the task team, Ledum Mitee, said the reports are not intended to witch-hunt”.

  • Fed Govt budgets N4.6tr

    Fed Govt budgets N4.6tr

    Minister of Finance Dr. Ngozi Okonjo-Iweala yesterday laid the Federal Government’s 2014 estimates of N4.6 trillion before the National Assembly.

    President Goodluck Jonathan inexplicably failed to perform the yearly ritual of reading the budget to the joint sitting of the National Assembly.

    The only other time when the President failed to present the budget was in 2009 when President Umaru Musa Yar’Adua sent the 2010 estimates to the National Assembly through his adviser on National Assembly Matters, Senator Muhammed Abba Aji. Yar’Adua died on May 5, 2010.

    Mrs. Okonjo-Iweala first laid the document wrapped in the national colours of green and white on the table at the Senate before the House of Representatives.

    She gave reporters an insight into the contents of the document.

    The expected revenue for the period is N3.73trillion; N1.1trillion is for capital expenditure, she said.

    The N1.1trillion for capital expenditure represents 27 per cent of the budget. The recurrent expenditure of N3.5 trillion represents 72 per cent.

    According to her, the N4.6 trillion is exclusive of the Subsidy Reinvestment and Empowerment Programme (SURE-P) funds, which is about N168.37b.

    Mrs. Okonjo-Iweala said: “Aggregate expenditure, excluding SURE – P funds, is about N4.6 trillion and the revenue is about N3.73 trillion.

    “The capital is about N1.1trillion and makes up about 27 per cent of the budget. The balance, of course, is the recurrent and it is about 72 per cent of the budget.

    “The distinguishing feature between the 2013 budget and the 2014 budget is the focus we have on really continuing the successes that we had in 2013 on creating jobs for young Nigerians. We are going to push it.”

    The Minister said: “This budget is the budget for job creation and inclusive growth, meaning that it is a budget which will continue the President’s Transformation Agenda for several sectors of the economy.

    “The budget is going to support the push in agriculture. It will kick-start the housing sector where we can create more jobs.

    “It is designed to our policies that would support manufacturing because jobs would be created there.

    “Industries will also be created in solid minerals. All these support will continue to be unleashed.

    “Job creation is the key to really solving the problems of the Nigerian economy. All the programmes that create jobs are very well supported. The SURE-P is also part of it. Community service programmes would be pushed. The YOUWIN programme will be pushed.

    “The infrastructure development is part of it. The Hon. Minister of transport is here, we have been working on rail development.

    “Ministry of Niger Delta is also part of the infrastructure development, Water Resources, FCT development and so on.

    “We have privatised power but we will be working on the transmission to direct resources there.

    “The distinguishing thing is that it’s a continuation of what we have done before, but with more emphasis on really pushing out jobs and also supporting safety nets that can further redistribute income to poor people in the country.”

    On the reason for the lower budget estimates for 2014 as against that of 2013, she said: “You can understand that we have some revenue challenges, which we had been very clear on all along because of the losses we suffered in terms of oil revenue. And also the losses from non- oil revenue due to the lower customs duties.

    “As you know, because we had a policy of trying to grow our own rice, we put higher tariffs on rice and, therefore, the importation of rice this year was low. I’m just using that as an example. Customs duties collected is lower. So, for both oil and non-oil revenue.

    Senate Leader Victor Ndoma-Egba moved a motion that the Coordinating Minister for the Economy and Minister of Finance be allowed to lay the budget – in line with Section 81 of the 1999 Constitution (as amended).

    Minority Leader Senator George Akume seconded the motion.

    Mrs. Okonjo-Iweala was promptly ushered into the Senate chamber by the Sergeant-At-Arms. She was accompanied by some ministers.

    The fanfare associated with budget presentation was missing.

    The Senate merely discharged the Minister and her entourage without any comment on the estimates, after she had laid the document on the table.

    But, the laying of the budget in the House of Representatives was not without some drama.

    At exactly 12:19, Speaker Aminu Tambuwal announced that it was time to allow the Minister to lay the 2014 budget before the House.

    Mrs. Okonjo- Iweala, in a maroon native outfit with her trademark headgear, was let into the chamber at 12:24. With her were some ministers.

    House Leader Mulikat Adeola-Akande moved that the Minister be invited to lay the budget. The motion was seconded by Leo Ogor. Mrs. Okonjo-Iweala did and won the applause of House members as she bowed copiously before the Speaker and before the members.

    She then shook hands with the Speaker and the leadership.

    No sooner had she shaken hands with the leader of the opposition, Femi Gbajabiamila, when a chant of APC! APC! APC!” rent the air.

    Almost immediately, PDP members began their own version of the chant. This went on for minutes, until the minister left the chamber.

    No fewer than 37 House members defected to the All Progressives Congress (APC) on Wednesday, dumping the Peoples Democratic Party (PDP)

  • ASSBIFI to Fed Govt: reduce poverty level by 25%

    ASSBIFI to Fed Govt: reduce poverty level by 25%

    THE Association of Senior Staff of Banks, Insurance and Financial Institutions (ASSBIFI) has called on the government to reduce poverty level by 25 per cent.

    The workers made the call at their eighth Triennial Delegates Conference in Ilorin.

    President of the union, Comrade Sunday Salako, said the appeal was his reaction to a recent World Bank report, stating that 100 million Nigerians live in destitution.

    The report, he added, stated that 63 per cent of the population live on less than $1.25 a day.

    He said: “This is quite unacceptable in a country that is ranked among the highest producers of crude oil in the world and with vast arable land resources.

    ‘’ASSBIFI, therefore, mandates all tiers of the government to reduce the poverty level by at least 25 per cent by the year 2016.’’

    President, Trade Union Congress (TUC), Comrade Bobboi Bala Kaigama, sought cordial relation between employers and employees to improve productivity.

    He said both parties must co-operate with each other for their mutual benefit and the good of the larger society. He added that any protracted friction between employer and employee “invariably results in a lose-lose situation for both sides because it is the business of the enterprise that suffers the most”.

    Kaigama believes that disagreements do not have to degenerate into conflicts if the parties, especially the employers, are proactive in dealing with work-place issues and continual oiling of relationship.

    Meanwhile, ASSBIFI has given a marching order to some management of banks and insurance firms to obey the International Labour Organisation (ILO) Core Conventions 87 and 89 and Section 40 of the Constitution on workers’ unionisation or face industrial crisis in the next few weeks.

    Salako urged some management of banks and insurance companies to obey the ILO convention and the constitution.

    He said: “The era when employers decide whether their members of staff should be organised is gone. The ILO Core Conventions 87 and 89 and Section 40 of the Constitution are sacrosanct. ASSBIFI sympathises with our colleagues in these unionised banks and insurance companies on the attack on their rights by their managements and declare that modern day slavery and attack on workers’ right must stop.”

    On lits threat of an industrial crisis in the sector, Salako said the following organisations; Diamond Bank, Stanbic IBTC, Standard Chartered, Fidelity and Guaranty Trust banks, as well as Leadway Assurance, Standard Alliance Insurance, Capital Express Insurance, Industrial and General Insurance (IGI), Goldlink Assurance and Continental Reinsurance must allow their senior staff members to unionise, adding that that is the only solution to avert unrest.

  • Fed Govt has met ASUU’s conditions, says Presidency

    Fed Govt has met ASUU’s conditions, says Presidency

    The Presidency has said that all the conditions stated by the leadership of the Academic Staff Union of Universities (ASUU) for the teachers to call off their five-month-old strike have been met by the Federal Government.

    The government deadline for the lecturers to go back to work or get sacked is Monday, but the union has rejected the government’s ultimatum.

    Senior Special Assistant to the President on Public Affairs Dr. Doyin Okupe confirmed yesterday that the Central Bank of Nigeria (CBN) had opened a N200 billion Revitalisation of Universities Infrastructure Account (RUIA).

    The opening of RUIA is one of the four conditions set for the Federal Government by ASUU to enable the union call off the strike.

    Okupe said the CBN had confirmed the opening of the account on the receipt of authorisation to that effect from the office of the Accountant General of the Federation.

    He was, however, silent on the union’s demand for the teachers’ salaries for the five months the strike has lasted.

    Okupe said: “On the 13th of November 2013, the office of the Accountant General of the Federation authorised the Banking and Payment System Department of the Central Bank of Nigeria via a letter with reference number FD/OAGF/220/ADC/1/4DF to open a Revitalisation of Universities Infrastructural Account with the CBN.

    “On the 29th of November, 2013, the CBN confirmed in a letter reference BPSD/BSD/CON VOL 17/088 to the Accountant General of the Federation that the said account had been opened and an account number was given.

    “Prior to all these, the Director of Funds in the office of the Accountant General of the Federation, M. K. Dikwa, through a letter reference FD/LP2008/37/C/I/DF dated 8th of November communicated with the Executive Secretary of the National Universities Commission, requesting for the list of federal universities in Nigeria for the purpose of opening a Special Account for them.

    “On the 12th November, 2013, the NUC through the office of the Executive Secretary, Prof Julius Okojie, in a letter reference NUC/ES/444/VOL15/280 responded to the request and gave the list of the universities with their various account numbers domiciled with the CBN.

    “Following this, the Accountant General has communicated with the Executive Secretary requesting for the details of amount payable to each of the listed Universities which is currently being processed by the NUC.

    “I state categorically that I have personally seen the balance in the account as of today and confirm that it contains the requisite amount and disbursement will commence as soon as on going administrative processes are sorted out.”

    The President’s aide declared that neither Jonathan nor the administration had credibility issues with the union, adding that the President had always honoured his words and obligations to the Nigerian people as at when due.

    He said none of the four conditions given by ASUU remained unmet, stressing that none was weighty enough to justify the continuation of the strike.

    The other three conditions given by the union are that

    •the renegotiation of the 2009 agreement in 2014 be included in the final document as agreed at the discussion with the President;

    •a non-victimisation clause which is normally captured in all interactions of this nature be included in the final document; and that

    • a new Memorandum of Understanding shall be validly endorsed, signed by a representative of government, preferably the Attorney General of the Federation and a representative of ASUU, with the President of the Nigeria Labour Congress (NLC) as a witness.

    Okupe said having met the conditions, there were no legitimate reasons for the strike to continue a day longer.

    “We, therefore, call on Dr Nasir Fagge, his distinguished colleagues in the ASUU leadership as well as other patriotic members of their union to put all else aside and call off this strike in the interest of our young men and women who have been kept out of school for five months and who have no recourse to any form of compensation whatsoever,” Okupe said.

    But ASUU vowed yesterday to pursue its demands to a logical end in honour of the late Prof. Festus Iyayi.

    The Chairman, University of Ibadan (UI) branch of the union, Dr Olusegun Ajiboye, who spoke at a procession in honour of the late Iyayi on the campus stressed that the union would sustain the struggle for a better education system as the first step in ensuring that Iyayi did not die in vain.

    Describing that late Iyayi as a committed unionist and detrabilised Nigerian who fought for education and the rights of Nigerians, Ajiboye said he paid the supreme price for Nigeria’s revitalisation.

    “We are going to ensure that his death is not in vain,” he said, adding that ASUU was committed to ensuring the ongoing strike comes to an end as soon as the Federal Government addresses the grey areas.

    Vice Chancellor Prof. Isaac Adewole hoped that what the late Iyayi stood for is not allowed to perish.

    An activist, Comrade Femi Aborisade, noted that Iyayi’s death was a challenge to ASUU. He challenged the union to mount a campaign against the use of sirens on Nigerian roads.

    He explained that those who use sirens, including government officials, are wasting the nation’s resources, stressing: “Enough is enough.”

    Aborisade urged ASUU to sustain the ongoing fight till its demands are met.

  • ASUU strike: Fed Govt, Wike lose their heads

    ASUU strike: Fed Govt, Wike lose their heads

    I shudder to think what intensity of anguish Nigeria’s eminent vice-chancellors endured as they reportedly sat glumly through last Friday’s meeting with the supervising minister of education, Nyesom Wike. Mr Wike, as everyone knows, is a man of many parts. Bold, dogged and energetic, the Ikwerre, Rivers State politician has made a huge impression on his followers, and, as it is obvious, is also now making a monstrously bigger impression on many Nigerians. The vice-chancellors who attended the meeting with him would doubtless have left his presence dumbfounded by the quirkiness of university education that produced such an impertinent man who many years ago defied the force and natural inclination of nature to leave a notable mark on his local government as an administrator and grassroots mobiliser.

    Not only was Mr Wike twice chairman of the now controversial Obio/Akpor local government, he performed with such distinction that he managed to win the confidence of Governor Rotimi Amaechi to become his Chief of Staff. Graduating with a law degree from the Rivers State University of Science and Technology, Mr Wike also developed a well-honed style of politics that saw him become an implacable force in both local and national politics. He even evaded the censorious gaze of the avuncular Peter Odili, a former governor of the state, to win his support at the initial stage of his political career. And he also managed to fool the feisty and sometimes impatient Mr Amaechi to earn the juicy and powerful post of Chief of Staff and later director-general of the Amaechi re-election campaign. He has now seduced President Goodluck Jonathan, who more and more finds solace in the arms of fixers and enforcers serenading him with sweet talk and bombast.

    It is important to understand Mr Wike’s background in order to find explanation for his hardline stand in the five-month-old Academic Staff Union of Universities (ASUU) strike. He has a law degree, is streetwise, aggressive and gregarious. But those who know him and have worked with him insist there is little in his character or education, not to talk of the logic and judgement that sets an educated man apart from an illiterate, to justify the degree he is brandishing. He is a practical politician who is effective and skilful in herding votes. But at bottom, he is a man who conceals his unimpressive intellectual endowment beneath a morass of public works projects. Such a man is more likely to resent his betters when they meet in forums that require logic, thoughtfulness, restraint and cultured language and diplomacy. Mr Wike precisely found himself at one such forum last Friday when he encountered his betters, vice chancellors and former university teachers whom he gloated over.

    To a deep and lettered man, such a meeting would lead him inexorably to the veneration and modesty that the knowledge imparted to him in his university days should naturally elicit. But to one plagued by doubts and inferiority complex, such a meeting could only trigger in all its fury the resentment his intellectual failings have dammed in his angry soul over the years. Like former President Olusegun Obasanjo who under Gen Murtala Mohammed took perverse delight in purging the universities and demystifying the super permanent secretaries who mocked his inadequacies, Mr Wike has issued orders to his former teachers which no reasonable man should ever give and which even under the military no one could hope to enforce. Sadly, the Jonathan government is populated by many such upstarts who read politics into every dispute.

    Acting on behalf of the Jonathan presidency, and after opening another war front in the president’s many battles, Mr Wike has ordered the deployment of policemen in universities to secure those who would heed the command to resume work. After all, of what use is power when it cannot be used? He has also ordered the vice-chancellors to reopen the universities, when in reality it was ASUU’s withdrawal of services, not the shutting of the campuses by school administrators, that paralysed the universities in the first instance. Those who fail to resume work, Mr Wike commanded the National Universities Commission (NUC), should be sacked, notwithstanding the fact that the universities have neither the resources nor even the available pool of qualified teachers to fill more than 40,000 vacancies already existing. In the opinion of Mr Wike, force should solve a problem that neither logic nor diplomacy could resolve in five months. As far as he understood, and based on the Kano meeting of the university teachers less than two weeks ago, at least 60 percent of them already indicated willingness to resume work. Of course Mr Wike’s foolish order and outburst are bound to unite the teachers once again, for they are nobody’s fools.

    It is a worrisome indication of the incompetence of President Jonathan’s men that a crisis nearing resolution could be allowed to fester once again, thereby snatching defeat from the jaws of victory. The president has himself not demonstrated brilliant statecraft, nor shown any indication he has the steady hands to propel the country to greatness. But by surrounding himself with devious and vacuous advisers and aides, he is more likely to take more wrong-headed steps capable of dooming his presidency. The president sees foreign destabilising agents, when nothing of the sort exists. Those who trouble him and the country are his ministers and aides. They are the ones who instigate him into hardline position, who alarm him with imaginary enemies, and fill his mind with anachronistic ideas of the powers and perks of a president. Thus they tell us that Dr Jonathan is the first president to engage the ASUU in 13 hours discussion, as if it is a regrettable thing, or as if his job is limited to effusing power without a corresponding acknowledgement of the burdens and responsibilities of office.

    The few outstanding issues in the ASUU strike were the warehousing of the first tranche of promised financial interventions, making the agreement already reached ironclad, and paying salary arrears. I find it difficult to see how these should be a problem. Instead, Dr Jonathan, Mr Wike and other supposedly educated officials who snivel around the presidency think it is an affront to doubt the president. Were there not enough reasons to doubt the presidency before now? Had that office not been desecrated before, and is it not now being desecrated by the thuggish characters that deface its hallowed corridors? As an adviser, I would have asked the president to approach ASUU’s new doubts (not new conditions, by the way) with the kind of self-deprecating humour US President Barack Obama is famous for.

    Answering a question on ASUU strike during his last media chat in September, Dr Jonathan said that in the heady days of the Ghanaian ‘revolution’ President J.J. Rawlings closed down universities for a long time in order to reorganise the education system. Though he added he was not thinking in that direction, it was embarrassing and insulting that his mind even wandered in that direction. If he thought nothing of closing down public universities because many around him didn’t have their children attending them, would he also close down private universities if he had his way? By now it must be obvious to everyone that we are dealing with a fascist government, not an elected presidency. (See box). They have begun to see external saboteurs and internal collaborators. They are bypassing a somnolent National Assembly and simply directly deploying the increasingly fascist police force to undermine the constitution and take away people’s rights.

    In the weeks ahead, and as the political noose tightens around his neck, a desperate Dr Jonathan will attempt extraordinary measures to keep himself in office. For all patriots, this is the time to abandon neutrality, a time to stand firm against fascism. The challenge before us then is how to guide this rampaging, paranoid bull through the country’s china shop lest we all come to grief. Indeed, the hysterical Mr Wike has managed to run the Jonathan government into a cul de sac. But if history is a guide, it is hard to see the government succeeding in its self-destructive course of action against ASUU. Not only are there no university teachers anywhere to recruit, Nigeria is hardly the right place for any competent teacher to come and offer his services, let alone for pittance and with no equipment to do the job. We are close to an election year; yet, Dr Jonathan is toying with the electorate and displaying unparalleled contempt for the youth. But perhaps we should wait to see what talisman he hopes to mesmerise us with in 2015.

  • We’ll soon finalise labour laws, says Fed Govt

    We’ll soon finalise labour laws, says Fed Govt

    The Federal Government will soon finalise labour-realted laws, which have been pending for some time, the Minister for Labour and Productivity, Chief Chukwuemeka Wogu, has said.

    The minister spoke yesterday in Ilorin, the Kwara State capital, at the ninth labour relations summit organised by the Michael Imoudu National Institute for Labour Studies (MINILS).

    Wogu explained that the goal was to bring the country’s labour statutes and administration system in line with international best practices.

    He said: “Some of our recognised achievements in this regard include the new minimum wage law and Employees Compensation Act, which benefited from our technical input and advocacy work during processes leading up to the enactment.

    “We made similar interventions with respect to the process that ultimately brought about the re-classification of the National Industrial Court (NIC) as a superior court of record-the national policy on productivity. We expect that the provisions and procedures set out in the policy will foster national development.

    “Any casual observer of our work will not fail to notice our emphasis on proactive measures. By espousing dialogue and democratic participation, we have been able to resolve many industrial relations challenges before they degenerated to disruptive levels.”

    Also, Kwara State Governor Abdulfatah Ahmed called for review of employment laws to protect the interest of workers.

    The governor said the review of the employment laws became necessary because “a situation where workers are dismissed, especially in the private and informal sectors without due process or where employees are barred from forming, or joining labour unions, is inimical to freedom of association and the right to fair hearing and must therefore be stopped through appropriate legislation”.

    He added: “As we prepare for another national dialogue, we must bring the issues of collective bargaining as it concerns the liberalisation of wages to the fore so that we can legislate a position that addresses the concern of workers and consider the financial capabilities of states.”

    Represented by his deputy, Elder Peter Kishira, the governor noted that government must create spaces for engagement with key stakeholders, such as labour, to gauge public needs.

    Ahmed said such engagement with labour is often forced by threats of or strikes.

    He also said organised labour, as an important index of legitimacy, must ensure that the laws guiding the labour sector reflect their contemporary needs and interests.

    The governor, who hailed the organised labour and the MINILS for promoting industrial harmony and excellent labour administration in the state, assured that his administration “will continue to promote the well being of all our workers through prompt payment of wages, regular training, access to affordable housing and health insurance scheme”.

  • Fed Govt plans economic revival strategy

    The Federal Government is to begin a coordinated economic strategy for the Northeast.

    A team of economic experts, led by Prof Soji Adelaja and representatives of development partners from the Office of the National Security Adviser (NSA), have begun a need assessment tour of the three states under emergency rule, Yobe, Borno and Adamawa.

    Adelaja, who is also a special assistant on Economic Intelligence in the Office of the NSA, said the initiative was aimed at brainstorming with the government to find out possible areas of intervention.

    “What we are doing is part of the Federal Government’s effort to find out the problems of the states worse hit by insurgency; suggests plans and strategies to them; find opportunities in the region and bring our development partners on board.”

    He hoped that Northeast’s economy would bounce back, citing Rwanda, Serbia and other wartorn countries that have recovered after crises.

  • Fed Govt sues Boko Haram man for church attack

    Fed Govt sues Boko Haram man for church attack

    The Federal Government has sued a suspected Boko Haram member Abdulmannan Obadiki in connection with the 2012 attack on the Deeper Life Church in Lokoja, the Kogi State capital.

    Twenty worshippers were shot dead in the attack when gunmen stormed the church during a vigil in August, last year.

    In a six-count charge filed by the Office of the Attorney-General of the Federation (AGF), Obadiki is charged with alleged terrorism and illegal possession of a firearm.

    He allegedly committed the offences in collaboration with others, now at large.

    The accused, wearing a native dress, was taken before Justice Gabriel Kolawole of the Federal High Court, Abuja, yesterday, by security operatives.

    His planned arraignment was aborted because of his inability to get a lawyer.

    Justice Kolawole adjourned till December 12.

  • Fed Govt okays $100m loan for three states

    Fed Govt okays $100m loan for three states

    The Federal Executive Council (FEC) yesterday approved a $100 million loan from the Indian Import Export Bank for Cross River, Enugu and Kaduna to address power infrastructure.

    The Minister of State for Finance, Yerima Ngama made this known to State House correspondents at the end of FEC meeting presided over by Vice President Namadi Sambo.

    He said the credit facility will first be taken by the Federal Government and then passed on to the three states.

    He explained that $30 million of the facility is for Cross Rivers towards actualising its Independent Power Project, while Enugu State will get $40 million for the electrification of 96 communities, as well as the supply and inauguration of 33KVA and  four 15KVA lines and for the distribution of transformers and other accessories to the 96 communities in the three Senatorial zones of the state.

    Ngama said the balance of $30 million, will be on-lent to the Kaduna State government to augment the resources needed for the construction of 70 kilometres transmission line from the Gurara Dam to Kaduna industrial area and the construction of 132/ 33KVA  substation power supply to Kaduna industrial area, adding that 56 communities in the state would also benefit from solar electricity project.

    He stated that the facility would attract concessionary rate of two per cent interest rate and would be repaid over a 10-year period, with three years’ moratorium, noting that it has a commitment charge of 0.5 per cent of undrawn balance and 0.5 per cent for service charge.

    He said the facility has been approved by both the National Assembly in the Medium Term borrowing plan and the Houses of Assembly in the respective states.

    “We believe this facility will go a long way towards transforming our industrial areas, as well as other communities as part of Mr. President’s economic transformation agenda,” he said.

    On the fear that the loan could bring Nigeria back to the period of high foreign debt burden, he said: “This credit facility is different from the previous loans that led to the pirating of huge  foreign debt.

    “Preponderant of commercial credits led to high interest rates, making Nigeria to pay over $40 billion for debt servicing, under the current regime, government is getting development loans also known as multi lateral and bilateral assistance.”

    He said domestic debts are of greater concern to government with government’s borrowing averaging as high as 19 per cent, explaining that government is now encouraging the concessionary foreign debt option.

    Ngama said the debt to GDP ratio is just slightly less than 20 per cent, but stressed that these loans are geared towards the development of infrastructural facilities.

    He said N3.6 trillion bond was raised to fund the past 52 per cent salary increase, adding that Nigeria has one of the lowest tax and Value Added Tax (VAT) rates globally. He lamented that 70 per cent of registered companies in Nigeria do not pay tax, saying this is the only country where everybody can import anything. The only people who pay tax in Nigeria are those whose taxes are deducted at source.”